Westfarmers sets stage for 19.7 billion dollar retail giant Coles

0 Comments | AFP, April, 2007

SYDNEY (AFP) — Australian conglomerate Wesfarmers Tuesday led a share raid on retail giant Coles, setting the stage for what could be one of the nation' biggest corporate deals worth 19.7 billion dollars (16 billion US).

Wesfarmers, a leader in home improvement and building supplies, netted an 11.3 percent stake in Coles, overtaking US private equity outfit Kohlberg Kravis Roberts (KKR), which made a failed 18.2 billion dollar offer for Coles last year.

Wesfarmers offered 16.47 dollars cash per Coles share in a deal it said would leave the company in Australian hands.

KKR's proposal of 15.25 dollars per share was last year rejected by Coles as significantly below the company's true value.

Wesfarmers managing director Richard Goyder said the company...